According to new HSBC research released on Friday, India’s long-term prognosis is still favorable and the investment cycle is anticipated to be on a medium-term upswing bolstered by government spending on manufacturing and infrastructure, a surge in private investments, and a rebound in the real estate cycle.

In order to promote quicker development, the HSBC Mutual Fund’s “Market Outlook Report 2025″ anticipates more private investments in renewable energy and associated supply chains, the localization of higher-end technological components, and India’s growing significance in global supply networks.

Regarding the debt outlook, the study said that the FX buy/sell USD swap windows, a policy measure taken by the RBI, helped the currency levels recover in February after a sharp decline in January.

As of right now, the actual economy has shown itself resilient to changes in the world. We expect the RBI-MPC will give another 25-bps decrease at its April policy while continuing to be flexible and agile on its liquidity strategy, based on the growth-inflation data, the MPC’s most recent policy action, and the MPC minutes,” the research said.